I still think the squeeze is on because our original Shorty still needs to cover. Keep in mind, most of the increase from 17.6 MM to 22.9 MM is restricted shares. Moreover, the LPS folks that sold to CSMA are long term players. It is the float that matters and quite frankly, that number has not been substantially affected from my readings. We already know that volume has declined and that a buy of moderate size moves the bid and ask up. The active float, i.e., day traders and other short term players, is shrinking-FACT. As certs continue to be received, shares shorted must be covered from an ever decreasing active float.
This outstanding share increase, again, is not from the Company dumping 5mm shares on to the street. Assets were acquired for those shares and those shares are RESTRICTED. The non-restricted share numbers have only increased from approximately 9.8MM to approximately 11.1MM.
Who knows how investors may react? Remember, we still haven't seen the NUMERATOR of the ratio,i.e., earnings.
TraderGreg |
